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SAINT HELIER, Jersey, March 3, 2014 /CNW/ - LONGREACH OIL AND GAS LIMITED (TSXV: LOI) (the "Company" or "Longreach") is pleased to announce that it has given notice to its contractor
Saipem SpA to mobilize the Drillmec Mas 7000 rig to the Kamar well
location for the purpose of drilling a second well as a follow up to
its Koba-1 well at its operated Sidi Moktar onshore license area in
Morocco.

The Company intends to complete an interim debenture financing of
between Cdn$10 - Cdn$15 million with a number of qualified investors,
the proceeds of which will be used for the ongoing development of the
Kamar well and for general corporate purposes. It is expected that the
debentures will bear interest at a rate of 10% per annum and will
mature two years from closing and will otherwise have terms and
conditions customary for transactions of this nature. It is expected
that purchasers of debentures will also receive non-transferable bonus
warrants to purchase ordinary shares of the Company for two years from
closing (subject to adjustment) with an exercise price of at least
Cdn$0.30. Insiders may participate in the proposed debenture
financing, subject to the availability of applicable related party
transaction exemptions. The proposed financing remains subject to
execution of definitive documentation and approval of the TSX Venture
Exchange.

If the proposed financing is completed, the Company intends to repay the
debentures with the proceeds of a subsequent public or private offering
of equity securities, which may include a rights offering to all
shareholders of the Company.

About Longreach

Longreach is an independent Canadian oil and gas company focused on its
significant land position in Morocco. The Company has a 50% operated
interest in the Sidi Moktar license area covering 2,683 square
kilometres and is working closely with ONHYM as a committed long-term
partner to unlock the hydrocarbon potential of the region. Morocco
offers a politically stable environment to work within and has
extremely favourable fiscal terms to energy producers. Longreach is a
public company listed on the TSX Venture Exchange under the symbol
"LOI".

This press release contains forward-looking statements. Such
forward-looking statements relate to future events or the Company's
future performance. All statements other than statements of historical
fact are forward-looking statements. Forward-looking statements are
often, but not always, identified by the use of words such as "may",
"will", "should", "expect", "plan", "anticipate", "believe",
"estimate", "predict", "project", "potential", "targeting", "intend",
"could", "might", "continue" or the negative of these terms or other
similar terms. Forward-looking statements in this press release
include, but are not limited to, statements regarding the drilling of
the a second well at the Company's operated Sidi Moktar onshore license
area in Morocco; the completion of the proposed interim debenture
financing and the expected terms and conditions thereof; the
participation of insiders of the Company in such interim financing; and
a potential subsequent equity financing if the interim financing is
completed. Forward-looking statements are only predictions.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking
statements. Some of the risks and other factors which could cause
results to differ materially from those expressed in the
forward-looking statements contained in this press release include, but
are not limited to: general economic conditions in Canada, the Kingdom
of Morocco and globally; executing the proposed interim debenture
financing or potential subsequent equity offering on terms which the
Company is willing or able to offer; industry conditions, including
fluctuations in the price of oil and gas, governmental regulation of
the oil and gas industry, including environmental regulation;
fluctuation in foreign exchange or interest rates; risks inherent in
oil and gas operations; political risk, including geological,
technical, drilling and processing problems; unanticipated operating
events which could cause commencement of drilling and production to be
delayed; the need to obtain consents and approvals from industry
partners, regulatory authorities and other third-parties; stock market
volatility and market valuations; competition for, among other things,
capital, acquisitions of reserves, undeveloped land and skilled
personnel; incorrect assessments of the value of acquisitions or
resource estimates; any future inability to obtain additional funding,
when required, on acceptable terms or at all; credit risk; changes in
legislation; any unanticipated disputes or deficiencies related to
title matters; dependence on management and key personnel; and risks
associated with operating in and being part of a joint venture.
Although the forward-looking statements contained in this press release
are based upon factors and assumptions which management of the Company
believes to be reasonable, the Company cannot assure that actual
results will be consistent with its expectations and assumptions.
Material factors and assumptions which management of the Company has
considered in connection with making the forward-looking statements in
this press release include that the Company will be able to raise
adequate proceeds and complete the interim financing on terms
acceptable to the Company and that the Company will be able to complete
a subsequent equity offering on terms acceptable to the Company. Undue
reliance should not be placed on the forward-looking statements
contained in this news release as there can be no assurance that the
plans, intentions or expectations upon which they are based will
occur. These statements speak only as of the date of this press
release, and the Company does not undertake any obligation to publicly
update or revise any forward-looking statements except as expressly
required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

This news release does not constitute an offer to sell or a solicitation
of an offer to buy any securities of Longreach in any jurisdiction in
which such offer, solicitation or sale would be unlawful. The
securities referred to herein have not been and will not be registered
under the United States Securities Act of 1933 (the "U.S. Securities
Act") or any state securities laws and may not be offered or sold
within the United States or to U.S. Persons (as defined in the U.S.
Securities Act) unless registered under the U.S. Securities Act and
applicable state securities laws, or an exemption from such
registration is available.